FTX: ‘King of Cryptocurrencies’ Accused of Fraud in US
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Sam Bankman-Fried was known as the ‘King of Cryptocurrencies’.
U.S. prosecutors on Tuesday indicted businessman Sam Bankman-Fried, the so-called “king of cryptocurrencies.”
He faces eight criminal charges after being arrested Monday night in the Bahamas.
The charges against the founder and former CEO of cryptocurrency platform FTX include conspiracy to defraud the United States, wire fraud, securities fraud and money laundering.
A federal court in Manhattan, New York announced that the 30-year-old businessman has been charged with misappropriating hundreds of millions of dollars from his company’s clients.
FTX, one of the largest cryptocurrency companies in the world, collapsed last month, affecting the entire cryptocurrency market.
The allegations indicate that he played a key role in FTX’s rapid decline and hid its financial problems from the public and investors.
Sam Bankman-Fried has been charged with violating campaign finance laws, a charge that could have far-reaching consequences for Bankman-Fried, one of the year’s biggest political donors.
The charges are in addition to allegations already announced by the Securities and Exchange Commission that the trader defrauded investors and used his resources to buy properties in his name and that of his family. America, New York.
debt, Good pictures
Sam Bankman-Fried was indicted for several frauds in the United States
Bankman-Fried was arrested in the Bahamas on Monday and is expected to be extradited to the United States. He denies any fraud, although he admitted in an interview with the BBC that he was “not as talented as I thought”.
Its legal team released a statement saying it was reviewing the allegations and “considering all its legal options.”
House of cards
Bankman-Fried has built a “house of cards based on fraud,” said Gary Gensler, chairman of the U.S. Securities and Exchange Commission.
Gensler said the allegations call for other sites to comply with US law.
FTX filed for bankruptcy in the US after thousands of customers were unable to get back their money invested in the market.
At the height of his business and success, Bankman-Fried was called a “younger version” of the historic American investor Warren Buffett, one of the world’s richest men.
At the end of October, Bankman-Fried had a net worth of more than $15 billion.
However, according to his version of events, he underestimated the huge amount required to be withdrawn by FTX clients, causing panic among investors.
Many US companies dealing in digital currencies are struggling with concerns about the country’s contract economy and the credibility of cryptocurrencies in general.
Bankman-Fried resigned as FTX’s CEO on November 11.
According to court documents from earlier this month, FTX currently owes nearly $3.1 billion to its top 50 creditors.
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